Dutch Government Plans To Set A Freelance Minimum Rate Of €16 Per Hour

On June 24, the Dutch Ministry of Social Affairs confirmed that it’s planning to introduce a minimum rate of €16 per hour for freelance work with the aim of protecting lower-income freelancers.

Estimates indicate that in the Netherlands some 80,000 freelancers earn less than €16 per hour, mainly working in farming or as caregivers, delivery workers, and drivers.

The new measure, which should be introduced in 2021, is part of wider government plans to regulate freelancing with the double aim of offering more protection and stability to self-employed workers while combating “fake” freelance contracts.

As reported by English-speaking Dutch media outlet Dutchnews.nl, the ministerial plans, minimum tariff aside, include a new system of checks for freelancers who earn less than €75 an hour to guarantee that their employers don’t have to pay premium and taxes on their behalf and a new regime to which freelancers earning over €75 per hour will be subjected.

For example, high-earners will have to formalize the relationship with their employers in a written declaration which will be valid for up to one year.

As a (part-time) freelancer myself I can’t help but appreciate any attempt to regulate the freelance job market, especially when it comes to guaranteeing a minimum rate for self-employed workers.

At the same time, the Dutch Minister of Social Affairs Wouter Koolmees specified that it might take “up to 10 years” to see the whole legislative effort come through.

Meanwhile, the fast-paced gig economy will probably have presented us with an entirely new array of contractual challenges.

Labor market experts are cautious about the efficacy of the new laws. "Certainly, it won't solve the whole problem, but it's a first step at the bottom of the market where the hustle is the most intense," industrial relations professor Paul de Beer told Dutch financial newspaper Financieele Dagblad.